I was talking with a loan officer that I used to work with at another company this week - he now works for Bank of America in the call center. He said that they are busier than ever and it isn't uncommon for BofA to mandate that he works overtime, on weekends, etc. because the phone seems to never stop ringing.
He then mentioned to me that the turn time to get a loan there was about 120 days.
It doesn't make any sense to me, but it must make sense to a lot of people. Call into a bigger lender and wait for months to get your loan done or go with a local, smaller lender and get your loan done in less than 30 days.
And probably end up with about the same chance of getting about the same rate and at least an "average" loan officer.
While I was still thinking about the 120-day-turn-time, I then came across something from TheTruthAboutMortgage.com that said the top 2 lenders in the first half of 2009 (Wells Fargo and Bank of America) accounted for almost half of the total mortgage production and that "Year over year, Wells Fargo saw loan fundings climb an impressive 63 percent, while Bank of America saw a 40 percent rise".
No wonder my friend is busier than ever -- for whatever reason, it appears clear that consumers are choosing to steer their business towards the larger banks who are still ramping up to try to accommodate the demand.
And it appears that they don't mind waiting 120 days to get a loan done.